In this constantly evolving modern world with passing of each day new problems arise, and new challenges are faced when it comes to securing a person’s identity many such steps are being taken to preserve the privacy of the customers. With the advancement of technology and searching for faster more efficient ways of customer identification and ID matching there are many Used cases where AI is used in case of KYC data automation.
KYC or Know Your Customer check is a process used to identify and verify the identity of a customer or client when someone tries to open an account in a bank and tack the person over time. KYC check is mostly required in the banking sectors or the taxation sector, where it a mandatory process to properly identify and verify the existence of a customer. KYC checks mostly contain the address verification along with the photograph and other details.
Why do we need KYC?
There are a set of laws and regulations which are strictly followed to prevent people from disguising illegally obtained assets and funds as legitimate income by safeguarding against trading illegal goods, tax evasion, market manipulation, corruption of public funds, etc. KYC verification is a way so to prevent illegal things from happening and to stop illegal data manipulation.
Automate KYC data extraction using OCR
The usual problems which we face in terms of automation or digitalization of the KYC verification process are sometimes the images which are there are of low quality, or some parts of the image are hazy this creates are a huge loophole in the entire process and this delays the verification process by days or sometimes the check is denied because of the image and the entire process must repeat itself. The use of AI has had a significant effect on this phase of the check. There is dedicated AI system which gives the clients an immediate or simultaneous image quality feedback whether the image is of good quality or not this significantly increases the chances of a bad quality picture being introduced in the database.
After the information is collected, we face a different set of problems the data which is collected from the client needs to be verified by a human to check weather the files sent meet the regulations or not this is again a time-consuming process and with a bulk of data it may take a person days to just check a small batch of the files. So, to tackle this problem Object detection models paired with OCR’s are used to properly check and verify the documents. For example, if an image of a passport is given the work of the model will be to properly identify and check for all the fields which are present in the images with the database so that the identity of the client can be checked.
Another problem which is faced it document fraud a person can digitally change or manipulate the files or change the document which in a way tamper with the authenticity of the document which is illegal to the human eye it may or may not be properly identified but if an AI model is Properly trained and if its added with a human moderation loop then the accuracy of the model can be significantly increased with time and more data.
Above lies a few challenges and the Solution to those problems of HOW we can use AI in automating KYC data verification. Now a days there are WEB based GUI’s we can integrate with the models, Cloud based services AI models which can be stored in cloud and with the help of API can be easily called, State-of-the-art Algorithms which gives us the best results. Together creating a system which works in absolute harmony to reduce our time and make our lives easier.
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Doc-Extractor helps businesses by extracting all relevant information from documents in seconds be it Process receipts, invoices, contracts, passports, and other documents, using our OCR Service
- ID Card
- Bank Statement
- Number Plate
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